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Business News Deals Digital Labels & Publishers
Epidemic Sound secures $450 million in finance with $1.4 billion valuation
By Chris Cooke | Published on Friday 12 March 2021
Production music firm Epidemic Sound has announced the completion of a new $450 million funding round, securing investment from the likes of EQT Growth and Blackstone Growth. The new financing, which values the company at $1.4 billion, will be used – the company has stated – to “accelerate its efforts to soundtrack the internet”.
Although it has an increasingly diverse mix of clients, the main aim of Epidemic Sound is to make it easier for online creators to license music for their videos. It operates outside the traditional structures of the music industry, where production music is usually administrated through the collective licensing system, at least in part.
That approach has garnered criticism from some in the songwriting community, although it makes it much easier for video-makers to license music on global one-stop-shop basis, safe in the knowledge that no other entities will seek to block or monetise the creator’s videos.
Some of Epidemic Sound’s catalogue is also available via streaming platforms like Spotify, with that music enjoying particular success on the popular chill out and relaxation playlists that are often under-serviced by the catalogues of more conventional record labels.
Confirming the new finance, Epidemic Sound co-founder and CEO Oscar Höglund said: “We’re in the privileged position where our music is the soundtrack to our generation’s greatest achievement. We know what the internet sounds like and through data, we can see the trends emerging among content creators as they use our tracks to bring their stories to life”.
“We’re THRILLED to partner with EQT Growth and Blackstone Growth to continue scaling how we use this data to grow our global network of creators and empower them all to thrive through new products, new music and new insights”, he added.
The company also noted that “the raise will fuel international expansion to reach new creators in both existing territories like North America, whilst also expanding and localising its digital offering and investing in music for new markets across the world”.
Commenting on his fund’s latest investment, Jon Korngold at Blackstone Growth said: “Epidemic Sound is a leading provider of restriction-free music and offers an essential resource to the millions of corporations and individuals that are generating more video content for customers, families, and friends alike. The company has established an incredible platform from which to expand globally, and we are privileged to have the opportunity to partner with Oscar and the management team to help unlock Epidemic Sound’s full potential in the years to come”.
